What is the scope of the release provided by the Franchisee in the Floyds 99 General Release?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT K (TO DISCLOSURE DOCUMENT)
GENERAL RELEASE
THIS GENERAL RELEASE ("Release") is made effective as of the day of, 20 by ("Franchisee") in favor of FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company ("Franchisor") (collectively referred to as "Parties"). The Parties have entered into that certain Franchise Agreement dated ("Franchise Agreement") which governs the development and operation of a FLOYD'S 99 Barbershop ("FLOYD'S 99 Shop" or "Barbershop") (to the extent not otherwise defined herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise Agreement). The Franchisee desires to transfer the Franchise Agreement, the ownership of the Franchisee, or the FLOYD'S 99 Shops or some or all of the assets of the Barbershop.
OR
The Franchisee desires to enter into a successor to the Franchise Agreement.
The Franchisor desires to consent to the Franchisee's request subject to the Franchisee's compliance with the terms and conditions set forth in the Franchise Agreement including, without limitation, the execution and delivery by the Franchisee to the Franchisor of this Release.
NOW, THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Exhibit K outlines the General Release that a franchisee must execute under certain conditions. This release is required when a franchisee desires to transfer their Franchise Agreement, the ownership of the franchisee entity, or the Floyds 99 Shops, including some or all of the assets of the barbershop. Alternatively, the release is required if the franchisee wants to enter into a successor agreement to the existing Franchise Agreement.
The General Release is a condition set by Floyds 99 for consenting to the franchisee's request to transfer the agreement or enter into a successor agreement. The release confirms the franchisee's compliance with the terms and conditions outlined in the Franchise Agreement. This includes the franchisee's execution and delivery of the General Release to Floyds 99.
By signing the General Release, the franchisee acknowledges the mutual promises and valuable consideration exchanged between the parties. This indicates that both Floyds 99 and the franchisee are giving up certain rights or claims in exchange for the benefits of the transfer or successor agreement. The specifics of what is being released are not detailed in the provided excerpt, but it generally involves releasing Floyds 99 from potential liabilities or claims related to the original Franchise Agreement.